TCF Bank 2012 Annual Report Download - page 66

Bank Secrecy Act Civil Money Penalty On January 25,
2013, TCF entered into a settlement agreement with the
OCC related to the review of TCF’s past BSA compliance.
Pursuant to this agreement, TCF agreed to pay a $10 million
civil money penalty.
Federal Reserve Notice of Proposed Rulemaking
On August 30, 2012, the Board of Governors of the Federal
Reserve System published in the federal register three
related notices of proposed rulemaking (the “Proposed
Rules”) relating to the implementation of revised capital
rules to reflect the requirements of the Dodd-Frank Act
as well as the Basel III international capital standards.
Among other things, if adopted as proposed, the Proposed
Rules would establish a new capital standard consisting of
common equity Tier 1 capital; increase the capital ratios
required for certain existing capital categories and add a
requirement for a capital conservation buffer (failure to
meet these standards would result in limitations on capital
distributions as well as executive bonuses) and add more
conservative standards for including securities in regulatory
capital, which would phase-out trust preferred securities
as a component of Tier 1 capital commencing January
1, 2013. In addition, the Proposed Rules contemplated
the deduction of more assets from regulatory capital
and revisions to the methodologies for determining risk
weighted assets, including applying a more risk-sensitive
treatment to residential mortgage exposures and to past
due or non-accrual loans. The Proposed Rules provide for
various phase-in periods over the next several years.
Forward-Looking Information
Any statements contained in this Annual Report on Form
10-K regarding the outlook for the Company’s businesses
and their respective markets, such as projections of future
performance, guidance, statements of the Company’s
plans and objectives, forecasts of market trends and
other matters, are forward-looking statements based on
the Company’s assumptions and beliefs. Such statements
may be identified by such words or phrases as “will likely
result,” “are expected to,” “will continue,” “outlook,”
“will benefit,” “is anticipated,” “estimate,” “project,”
“management believes” or similar expressions. These
forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to
differ materially from those discussed in such statements
and no assurance can be given that the results in any
forward-looking statement will be achieved. For these
statements, TCF claims the protection of the safe harbor
for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Any forward-
looking statement speaks only as of the date on which it
is made, and we disclaim any obligation to subsequently
revise any forward-looking statement to reflect events or
circumstances after such date or to reflect the occurrence
of anticipated or unanticipated events.
Certain factors could cause the Company’s future results
to differ materially from those expressed or implied in any
forward-looking statements contained herein. These factors
include the factors discussed in Part I, Item 1A of this report
under the heading “Risk Factors,” the factors discussed
below and any other cautionary statements, 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; Competitive
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, reduced demand for financial services and loan
and lease products, deposit outflows, deposit account
attrition or an inability to increase the number of deposit
accounts; customers completing financial transactions
without using a bank; 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; the effect of any negative publicity.
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