TCF Financial CorporationTCB

Morningstar Rating

Stock Research and Analysis

by Jaime Peters, CFA, CPA

TCF Financial takes a fairly unique approach to the commoditized banking business. Focusing on deposit gathering, the company has built an impressive franchise that emphasizes convenience and customer service. These tools have built a deposit base that Read more

Bulls Say

Depositors pay a steep price for TCF's convenience. Recurring service charges as a percentage of deposits is well over 2%.

TCF has strict underwriting standards. The bank does not have any subprime or low-doc loans on its balance sheet and never purchased mortgages from brokers.

Bears Say

TCF's exposure to Michigan is significant. Loan losses could be volatile through the downturn.

As the recession continues, TCF may keep its dividend payout at low levels.

Congressional actions to protect consumers could threaten some of TCF's lucrative sources of fee income. Read more

Strategy

TCF's focus is simple. First, gather low-cost deposits by being the most convenient bank around. Second, charge fees on those accounts and lend out the deposits to high quality borrowers. This easy to Read more

Management

William Cooper returned to TCF in mid-2008, taking back the helm after a three year retirement. Cooper is largely responsible for the simple but profitable strategy that makes TCF unique. After a year of receiving only dividend checks as his cash compensation, Read more

Profile

TCF Financial is a consumer focused bank headquartered in Minnesota. Generally serving larger mid-west markets, the company emphasized convenience with supermarket branches, Read more

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