TCF Bank 2011 Annual Report Download - page 8

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1110090807
$957
Millions of Dollars
$969
$1,020
$1,334
$1,579
Tangible Realized Common Equity
Tangible Realized Common Equity Ratio
Tangible Realized
Common Equity
Millions of Dollars
Certicates of Deposit
$9.6
$10.2
$11.6
$11.6
$12.2
Core Deposits
1110090807
Total Deposits
Billions of Dollars
04 TCF Financial Corporation and Subsidiaries
• On March 15, 2011, TCF raised gross
proceeds of $230 million through a
public common stock offering of
15,081,968 shares. As we have done
in the past, we chose to take advantage
of market conditions and raised the
capital when we could. This additional
capital allowed us to pay off our senior
unsecured notes and continue the
growth of our very successful specialty
finance businesses. TCF’s capital
management strategy is prudent and
provides flexibility to take advantage
of balance sheet opportunities.
• With TCF’s annual dividend rate of
$.20 per share in 2011, TCF has paid a
common stock dividend 95 consecutive
quarters. When capital accumulation
from earnings exceeds capital required
for asset growth and risk parameters
permit, TCF will raise its dividend.
We actively review these factors on a
quarterly basis as returning capital to
our stockholders remains an important
part of how we deliver value.
• TCF is nancially strong and remains
a safe and sound bank. We are solidly
capitalized and have ample liquidity
to conduct business. TCF’s tangible
realized common equity, which we feel
is the most important capital metric,
was $1.6 billion, or 8.42 percent of
tangible assets at December 31, 2011.
We continue to exceed all well-capital-
ized requirements as defined by the
regulatory agencies. At December 31,
2011, TCF had $647.3 million of total
risk-based capital in excess of the
stated well-capitalized requirement.
We also anticipate exceeding the
minimum standards under the Basel III
capital guidelines.
• At December 31, 2011, TCF’s stock
price closed at $10.32 per share, down
from $14.81 per share on December 31,
2010. Several key factors weighed
heavily on stock prices across the
industry in 2011, including regulatory
uncertainty such as the Durbin
Amendment and macroeconomic
concerns including depressed home
values, elevated unemployment and
the European debt crisis. Until the
economy shows more consistent
signs of improvement, pressure
on the stock price may continue.
Retail Banking
TCF’s Retail Banking division consists
of branch banking and retail lending.
In branch banking, our focus has been
on growing low-cost deposits to fund
both our regional and national lending
programs. Similar to 2010, we have
recently spent a significant amount of
time developing products that can help
increase the level of convenience for
our customers in the ever-changing
competitive environment. Deposit
balances totaled $12.2 billion at
year-end, up 5.3 percent from 2010.
We are committed to providing our
customers with the most convenient
products possible, including the launch
of free TCF Mobile Banking in early
2011. Our recent product changes have
increased the simplicity and conve-
nience to our customers with the
intention of also increasing profitability
for the bank, however, changes to our
deposit account products are still
evolving. We are currently evaluating
additional ideas and expect to make
further enhancements in 2012.