TCF Bank 2011 Annual Report Download - page 68

written or oral, which may be made or referred to in
connection with any such forward-looking statements. Since
it is not possible to foresee all such factors, these factors
should not be considered as complete or exhaustive.
Adverse Economic or Business Conditions, Credit
and Other Risks Deterioration in general economic and
banking industry conditions, including defaults, anticipated
defaults or rating agency downgrades of sovereign debt
(including debt of the U.S.), or continued high rates of
or increases in unemployment in TCF’s primary banking
markets; adverse economic, business and competitive
developments such as shrinking interest margins, deposit
outflows, deposit account attrition or an inability to
increase the number of deposit accounts; adverse changes
in credit quality and other risks posed by TCF’s loan, lease,
investment and securities available for sale portfolios,
including declines in commercial or residential real estate
values or changes in the allowance for loan and lease
losses dictated by new market conditions or regulatory
requirements; interest-rate risks resulting from fluctuations
in prevailing interest rates or other factors that result in a
mismatch between yields earned on TCF’s interest-earning
assets and the rates paid on its deposits and borrowings;
foreign currency exchange risks; counterparty risk, including
the risk of defaults by our counterparties or diminished
availability of counterparties who satisfy our credit
quality requirements; decreases in demand for the types of
equipment that TCF leases or finances; limitations on TCF’s
ability to attract and retain manufacturers and dealers to
expand the inventory finance business.
Legislative and Regulatory Requirements New
consumer protection and supervisory requirements and
regulations, including those resulting from action by the
CFPB and changes in the scope of Federal preemption
of state laws that could be applied to national banks;
the imposition of requirements with an adverse impact
relating to TCF’s lending, loan collection and other business
activities as a result of the Dodd-Frank Act, or other
legislative or regulatory developments such as mortgage
foreclosure moratorium laws or imposition of underwriting
or other limitations that impact the ability to use certain
variable-rate products; reduction of interchange revenue
from debit card transactions resulting from the Durbin
Amendment to the Dodd-Frank Act; impact of legislative,
regulatory or other changes affecting customer account
charges and fee income; changes to bankruptcy laws
which would result in the loss of all or part of TCF’s security
interest due to collateral value declines; deficiencies in
TCF’s compliance under the Bank Secrecy Act in past or
future periods, which may result in regulatory enforcement
action including monetary penalties; increased health
care costs resulting from Federal health care reform
legislation; adverse regulatory examinations and resulting
enforcement actions or other adverse consequences
such as increased capital requirements or higher deposit
insurance assessments; heightened regulatory practices,
requirements or expectations, including, but not limited to,
requirements related to the Bank Secrecy Act and anti-
money laundering compliance activity.
Earnings/Capital Risks and Constraints, Liquidity
Risks Limitations on TCF’s ability to pay dividends or
to increase dividends in the future because of financial
performance deterioration, regulatory restrictions or
limitations; increased deposit insurance premiums, special
assessments or other costs related to adverse conditions in
the banking industry, the economic impact on banks of the
Dodd-Frank Act and other regulatory reform legislation; the
impact of financial regulatory reform, including the phase
out of trust preferred securities in tier 1 capital called for
by the Dodd-Frank Act, or additional capital, leverage,
liquidity and risk management requirements or changes in
the composition of qualifying regulatory capital (including
those resulting from U.S. implementation of Basel III
requirements); adverse changes in securities markets directly
or indirectly affecting TCF’s ability to sell assets or to fund
its operations; diminished unsecured borrowing capacity
resulting from TCF credit rating downgrades and unfavorable
conditions in the credit markets that restrict or limit various
funding sources; costs associated with new regulatory
requirements or interpretive guidance relating to liquidity;
uncertainties relating to customer opt-in preferences with
respect to NSF fees on point of sale and ATM transactions
which may have an adverse impact on TCF’s fee revenue;
uncertainties relating to future retail deposit account
changes, including limitations on TCF’s ability to predict
customer behavior and the impact on TCF’s fee revenues.
Competitive Conditions; Supermarket Branching
Risk; Growth Risks Reduced demand for financial
services and loan and lease products; adverse
developments affecting TCF’s supermarket banking
relationships or any of the supermarket chains in which TCF
maintains supermarket branches; customers completing
financial transactions without using a bank; the effect of
any negative publicity; slower than anticipated growth in
50 TCF Financial Corporation and Subsidiaries