TCF Financial Corporation
| Company type | Public |
|---|---|
| Industry | Banking |
| Founded | 1923 |
| Fate | Acquired by Huntington Bancshares in June 2021 |
| Headquarters | Detroit, Michigan , United States |
Area served | Minnesota, Illinois, Michigan, Colorado, Wisconsin, Ohio, South Dakota, United States; Canada; New Zealand; Australia |
| Products | Banking, specialized lending and leasing |
TCF Financial Corporation, initially known as Twin City Federal, was a bank holding company based in Detroit, Michigan. Its subsidiary, TCF Bank, maintained a network of 478 branches spanning Minnesota, Illinois, Michigan, Colorado, Wisconsin, Ohio, and South Dakota. Additionally, it operated specialized lending and leasing divisions both across the United States and internationally, including in Canada, New Zealand, and Australia. In June 2021, TCF was acquired by Huntington Bancshares.
History
Founded in Minneapolis in 1923 as Twin City Building and Loan Association, the company secured a federal charter in 1936 under the name Twin City Federal Savings and Loan Association. It transitioned to a publicly traded company in 1986.
Significant acquisitions during its growth included Great Lakes National Bank in 1995 and Winthrop Resources Corporation for $321 million in 1997. The purchase of VGM Leasing in 2004 broadened its leasing capabilities. In 2006, TCF expanded geographically by launching its inaugural branch in Mesa, Arizona. The bank entered the commercial inventory finance sector in both the U.S. and Canada through TCF Inventory Finance in 2008, followed by expansion into indirect auto financing with the acquisition of Gateway One Lending & Finance in 2011.
To streamline operations, TCF strategically reduced its physical presence by shutting down 37 branches in 2013 and an additional 33 branches in 2016, frequently substituting full-service locations with ATM-only sites.
In August 2019, TCF merged with Chemical Financial Corporation—originally established as Chemical State Savings Bank in 1917—which had grown through several acquisitions including O.A.K. Financial Corporation (2010), Northwestern Bank (a $121 million cash transaction in 2014), Monarch Community Bancorp (a $27.2 million stock deal in 2015), Lake Michigan Financial Corporation (a $187.4 million combination of cash and stock in 2015), and Talmer Bancorp (a $1.7 billion cash and stock transaction in 2016). Chemical Bank moved its headquarters from Midland to Detroit in 2018.
In 2020, TCF withdrew from the Arizona market by selling its seven branches to Global Credit Union. Following the acquisition by Huntington Bancshares, regulatory requirements mandated the sale of 13 Michigan branches to Horizon Bank. The merger finalized in June 2021.
Throughout its existence, TCF’s strategy focused on regional banking supported by specialty finance operations, leveraging acquisitions and branch network adjustments to enhance growth and increase market penetration within the Midwest and Mountain West areas.
Overdraft fees
In 2010, TCF Bank was subject to litigation concerning its overdraft fee practices. The bank processed larger transactions first, which accelerated the depletion of account balances and resulted in higher overdraft fees on smaller remaining amounts. Moreover, it applied fees on a daily basis rather than as a single charge. Although TCF instituted a daily overdraft fee of $28 in 2011, this policy was reversed in 2012 after considerable public criticism.
Violation of Bank Secrecy Act
In January 2013, the Office of the Comptroller of the Currency imposed a $10 million fine on TCF for failing to timely submit suspicious activity reports, constituting a breach of the Bank Secrecy Act.
Racial discrimination lawsuit
On January 21, 2020, police were contacted by an assistant manager at a TCF branch in Livonia, Michigan, after Sauntore Thomas, an African-American client, tried to deposit settlement checks related to a racial discrimination lawsuit. Despite confirmation from Thomas's attorney regarding the checks' authenticity, the branch raised concerns about their legitimacy and filed a fraud report. Thomas subsequently initiated legal action against TCF seeking compensation. On January 23, the bank issued an apology, admitting that involving law enforcement was unwarranted and explaining that additional caution was exercised due to the size of the deposits.
Sponsorship
TCF possessed the naming rights to the stadium at the University of Minnesota, which is currently called Huntington Bank Stadium.
In February 2019, Chemical Financial acquired the naming rights for Detroit's Cobo Center, which was renamed TCF Center in August 2019; following its merger with Huntington Bank, the venue was later renamed Huntington Place.