TCF Bank 2010 Annual Report Download - page 4

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William A. Cooper,
Chairman of the Board & Chief Executive Officer
As I finish my 25th year as Chairman
of TCF, it is rewarding to see that we
have been able to create a successful
company with sustained profitability
through the various economic cycles.
I attribute our success to a conservative
philosophy of banking, which is
embedded in everything we do at
TCF. At year end, TCF reported its 63rd
consecutive quarter of profitability.
This is a noteworthy achievement few
of our competitors can match. At TCF,
we value a large and growing customer
base and deliver on our core conve-
nience promise; we believe in secured
and diversified lending to minimize
risk; we focus on prudent capital and
liquidity management to create a safe
and sound bank; and we manage our
expenses very well. We have a business
model that works, despite the economic
conditions we have faced.
As important as what we have done are
the things we have not done. TCF never
made any subprime loans. We never
securitized any loans. We did not
conduct business with Fannie Mae® or
Freddie Mac®. We don’t own any credit
default swaps. All of our assets are on
our balance sheet. Virtually all of our
loans are secured. We are largely
funded with low-cost retail deposits
and we don’t participate in nationally
syndicated credits.
2010 was yet another tumultuous year
in the financial services industry. Many
economists and bankers, including
myself, thought 2010 would be “The
Comeback Year” in which real signs of
economic improvement would be seen
throughout the country. Instead, we
continued to see elevated unemploy-
ment rates, depressed values on homes
and other assets, and businesses
postponing projects.
Change in 2010 came mainly from
expansion of government intervention
into the financial services industry.
Compliance with new legislation and
regulation for all financial institutions
has been significant in terms of both
time and cost, but more painful for
institutions like TCF that never partici-
pated in the various activities that
caused the financial crisis in the
first place. This level of government
oversight is unlike any I have seen
in my career. However, I can say with
certainty that banks, including TCF, will
find ways to continue to address these
issues going forward.
At December 31, 2010, TCF’s stock price
closed at $14.81 per share, up from
$13.62 per share on December 31,
2009 and a 52-week low of $12.90 on
November 1, 2010. We have seen
significant volatility in the stock price
over the past 52 weeks and increased
short-selling activity, but by year-end
the pressure on our stock price was
related mainly to the uncertainty
around the regulatory environment,
which I expect to settle somewhat
in 2011 when we know more where
these new regulations will land.
A Look At 2010
• TCF management and staff spent a
great deal of time and effort around
compliance with new and proposed
regulations in 2010, primarily around
the following items:
Opt-in Initiative On August 15, 2010,
new regulations on overdraft fees
specific to ATM transactions and
one-time debit card transactions became
fully effective. TCF was one of the first
banks in the country to proactively
implement a highly successful customer
education program around this issue
and the number of opt-ins has been a
true testament of how our customers
Dear Stockholders: