TCF Bank 2013 Annual Report Download - page 20

States. At December 31, 2013, there were $292.3 million in campus deposits. TCF has a 25-year naming rights agreement with
the University of Minnesota to sponsor its on-campus football stadium, ‘‘TCF Bank Stadium’’, which opened in 2009.
Non-interest income is a significant source of revenue for TCF and an important factor in TCF’s results of operations. Maintaining
fee and service charge revenue has been challenging as a result of economic conditions, changing customer behavior and the
impact of regulations. Providing a wide range of branch banking services is an integral component of TCF’s business philosophy
and a major strategy for generating additional non-interest income. TCF offers retail checking account customers low-cost,
convenient access to funds at local merchants and ATMs through its debit card programs. TCF’s debit card programs are
supported by interchange fees charged to retailers. Key drivers of banking fees and service charges are the number of deposit
accounts and related transaction activity.
Treasury Services Treasury Services’ primary responsibility is management of liquidity, capital, interest rate risk, and portfolio
investments and borrowings. Treasury Services has authority to invest in various types of liquid assets including, but not limited
to, United States Department of the Treasury (‘‘U.S. Treasury’’) obligations and securities of various federal agencies and U.S.
Government sponsored enterprises, deposits of insured banks, bankers’ acceptances and federal funds. Treasury Services also
has the authority to enter into wholesale borrowing transactions which may be used to compensate for reductions in deposit
inflows or net deposit outflows, or to support lending, leasing and other expansion activities. These borrowings may include
Federal Home Loan Bank (‘‘FHLB’’) advances, brokered deposits, repurchase agreements, federal funds, and other permitted
borrowings from credit worthy counterparties.
Information concerning TCF’s FHLB advances, repurchase agreements, federal funds and other borrowings is set forth in
‘‘Item 7. Management’s Discussion and Analysis – Consolidated Financial Condition Analysis – Borrowings’’ and in Notes 10 and
11 of Notes to Consolidated Financial Statements.
Support Services
TCF’s support services business segment consists of the holding company and corporate functions that provide data processing,
bank operations and other professional services to the operating segments.
Other Information
Activities of Subsidiaries of TCF TCF’s business operations include those conducted by direct and indirect subsidiaries of
TCF Financial, all of which are consolidated for purposes of preparing TCF’s consolidated financial statements. TCF Bank’s
subsidiaries principally engage in leasing and equipment finance, inventory finance and auto finance activities. See ‘‘Item 1.
Business – Lending’’ for more information.
Competition TCF competes with a number of depository institutions and financial service providers experiencing significant
competition in attracting and retaining deposits and in lending activities. Direct competition for deposits comes primarily from
banks, savings institutions, credit unions and investment banks. Additional significant competition for deposits comes from
institutions selling money market mutual funds and corporate and government securities. TCF competes for the origination of
loans with banks, mortgage bankers, mortgage brokers, consumer, and commercial finance companies, credit unions, insurance
companies and savings institutions. TCF also competes nationwide with other companies and banks in the financing of
equipment, inventory and automobiles, leasing of equipment and consumer real estate junior loans. Expanded use of the
Internet has increased competition affecting TCF and its loan, lease and deposit products.
Employees As of December 31, 2013, TCF had 7,449 employees, including 2,008 part-time employees. TCF provides its
employees with comprehensive benefits, some of which are provided on a contributory basis, including medical and dental
plans, a 401(k) savings plan with a company matching contribution, life insurance and short- and long-term disability coverage.
Regulation
TCF Financial, as a publicly held bank holding company, and TCF Bank, which has deposits insured by the Federal Deposit
Insurance Corporation (‘‘FDIC’’), are subject to extensive regulation. Among other things, TCF Financial and TCF Bank are subject
to minimum capital requirements, lending and deposit restrictions and numerous other requirements. TCF Financial’s primary
regulator is the Federal Reserve and TCF Bank’s primary regulator is the Office of the Comptroller of the Currency (‘‘OCC’’).
Regulatory Capital Requirements TCF Financial and TCF Bank are subject to regulatory capital requirements of the Federal
Reserve and the OCC, respectively, as described below. These regulatory agencies are required by law to take prompt action
when institutions are viewed as engaging in unsafe or unsound practices or do not meet certain minimum capital standards. The
Federal Deposit Insurance Corporation Improvement Act of 1991 (‘‘FDICIA’’) defines five levels of capital condition, the highest
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