TCF Bank 2013 Annual Report Download - page 13

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Keys to Future Success
The building and investing in 2012
and the execution in 2013 have
positioned us well for the future, but
there is more hard work that needs to
be done to achieve our goals. Our
primary goal as we head into 2014
and beyond is to achieve a return on
average assets of 1.25 percent. TCF’s
return on average assets in 2013 was
.87 percent, up 37 basis points from
2012, excluding the balance sheet
repositioning. We are where we need
to be on the revenue side of the bank,
but we still have a ways to go on the
expense side and with the provision.
Below are some keys to achieving this
goal and other future initiatives:
• Increase revenue while controlling
expenses. A focus will continue to
be placed on identifying additional
sources of revenue while managing
expenses by improving business
efficiencies.
• Consistent high quality, diversified
loan and lease originations. TCF’s
recent investments in our national
lending platforms have given us the
opportunity to generate consistent
loan and lease originations while
adhering to our conservative
underwriting philosophy. We will
continue to look for additional
asset-generation opportunities.
• Continue to improve the customer
experience. TCF expects to further
improve the branch customer
experience in 2014 through product,
service and branding enhancements
along with channel optimization
initiatives in branch, ATM, online
and mobile platforms.
• Continued improvements in credit
quality. 2013 was a good year for
TCF in terms of improving credit
quality. Now we need to ensure that
we are able to continue the trends
we have seen into 2014. We believe
that economic improvement, such
as increases in home values, as well
as growth in our strong credit quality
national lending businesses and a
conservative underwriting philosophy
will help us achieve this goal.
• Further enhance enterprise risk
management. The investments made
in our enterprise risk management
program in 2013 are already paying
off. TCF’s new Chief Risk Officer is
making great strides in further
enhancing the program. Enterprise
risk management will continue to
be a company-wide priority.
• Maintain strong capital management.
We believe that maintaining a
strong capital position will ensure
that we are prepared for all market-
place situations and are able to
take advantage of marketplace
opportunities. We continue to
operate in excess of Basel III
capital requirements.
• Ensure strong and diverse sources
of liquidity. TCF’s funding sources
are diverse and include a large core
depositor base. Sufficient levels of
liquidity are also available, consisting
of cash held at the Federal Reserve
and unencumbered marketable
securities. While maintaining these
sources, TCF will continue to explore
additional avenues to add further
diversity, which will help to ensure
that TCF is prepared for future
growth opportunities.
• Emphasize good corporate
governance. Our customers and
stockholders entrust us with their
money and confidential information,
and therefore our management
practices demand high standards.
A reputation for honesty and
integrity continues to rank at the
top of our priorities.
Non-accrual Loans
& Leases and Other
Real Estate Owned
Millions of Dollars
$346
$402
$486
$433
$476
Net Charge-offs
Percent
13
12111009
1.34%
1.47%
1.45%
1.54%
13
12111009
0.81%
2013 Annual Report // TCF Financial Corporation and Subsidiaries 11