TCF Bank started as Twin Cities Federal Bank in 1923.  The Minnesota-based bank now operates locations spread across the central United States.

TCF has a place in the public consciousness for two primary reasons.  

First, TCF has made a point of emphasizing banking convenience.  It’s known for setting up small branch locations in grocery stores, for instance, and has a relatively unique policy with respect to operating hours.  TCF Bank is one of the only banks that makes a point of being open seven days a week.  

Need to make a withdrawl or deposit on a Sunday morning?  No problem if you’re a TCF customer!

TCF is also in the limelight because of a multi-million dollar deal that secured the naming rights to the Universityof Minnesota’s new football stadium.  TCF Bank Stadium, future home of the Minnesota Gophers, will open in time to kick off the 2009 NCAA football season.  It’s an impressive, on-campus stadium and TCF was willing to do what it took to put its name on the facility.

And getting the TCF name on the stadium wasn’t cheap.  TCF is in the process of shelling out $35 million as part of a multi-year deal regarding the facility.  

Recently, however, TCF has found its way into the papers for a few less pleasant reasons.  Like so many other banks, TCF has been experiencing rougher than expected times.

On January 22, 2009, TCF announced profits that fell short of analysts’ earlier projections.  That shortfall appears to be the direct result of a rough end of the year.  Minnesota’s Pioneer Press summarized, noting that profit “fell 60% in the fourth quarter of 2008″.  It is worth noting, however, that unlike many other banks, TCF is still turning a profit.  

You might think that TCF’s struggles are an outgrowth of the same policies that have damaged other institutions.  According to TCF Bank officials, that’s not the case.  TCF has been outspoken in defense of its operation, maintaining that they’re suffering at the hands of bad decision-making on the part of other banks.

TCF wrote off more bad loans than expected last year, which cut into its bottom line.  Chief Executive William Cooper argued that wasn’t TCF’s fault, stating that ”[h]igher charge-offs at TCF have been primarily due to the imprudent behavior of our competitors and an ill-advised monetary policy that created the unprecedented rise and fall of the housing markets.”

In other words, TCF is arguing that they’re an innocent bystander in this recession and that they did not engage in the questionable lending practices that many blames as the precursor to the subprime mortgage crisis.  Unlike other banks who have issued statements critical of past lending and who are announcing plans to change their business model, TCF remains steadfast in their position that they comported themselves appropriately.

TCF argued its position clearly.  According to Cooper:

TCF has not made subprime, broker purchased, Option ARM, teaser rate, out of market, low doc or other risky mortgage loans. TCF kept on its balance sheet all the loans it originated. TCF has no auto or credit card portfolios or asset backed commercial paper. We have never owned Fannie Mae or Freddie Mac preferreds, trust preferred securities or bank owned life insurance (BOLI). TCF does not have any derivative contracts. 

He concludes that, “TCF remains profitable, solidly capitalized and ready to take advantage of prudent growth opportunities.”

The last few weeks have udoubtedly been frustrating for TCF bank, but they make a strong case for themselves.  That’s why most of the conversation about TCF will probably continue to revolve around Gophers’ football and seven-day-a-week bank access.