None of these risks are new. Our consistent results have proven that we have managed these risks in the past and we believe we are adequately prepared to manage them in the future. Our philosophy at TCF is to run a highly profitable bank and to minimize risk. TCF does not utilize uncon- solidated subsidiaries and has no exotic derivatives, foreign loans, bank owned life insurance, etc. In our opinion, TCF’s accounting is conser- vative. A careful reading of this Annual Report will tell you generally everything about our company. We try to keep our financial reporting simple, but as complete as possible. We have a lot to be proud of and nothing to hide. Over the long term, the success and viability of our supermarket part- ners are important to TCF. If our partners sell or contract their stores, we are at risk; though over time, as we build out our traditional branch system, this risk is mitigated somewhat. We continue to work closely with our partners to optimize our businesses and to be aware of and address any potential risks. New competitors, many of whom have significantly more resources than TCF, are entering the financial services business. We must remain aware of these competitors and be ready to address the challenges they present. Risks We think it is appropriate to mention here what we consider to be the major risks to our continued success. First is the success of our de novo branch expansion. We are relying on the continued, long-term success of branch banking. Second, TCF, like all banks, is subject to the effects of any economic downturn. In particular, a significant decline in home val- ues in our markets could have a negative effect on our results. A bad econ- omy can create increased loan and lease losses. The third risk is our ability to attract and retain new customers. Our overall growth is dependent on our ability to grow our checking accounts. Deposit losses (fraudulent checks, etc.) have risen and combating them is a continuing challenge. Technological change is a risk. Additionally, rising and falling interest rates affect our results. Legal, regulatory and tax issues are always a risk (the pending Visa ® and Mastercard ® debit card merchant lawsuit is a good example of this legal risk).  2002 Annual Report _  Investing in the Future page 7 02 01 00 99 98 $618 $826 $1,074 $1,213 $1,518 Supermarket Deposit Growth 2002 Annual Growth Rate of +25%GLYPH<CR> (millions of dollars) 02 01 00 99 98 160 195 213 234 244 Supermarket Branch Expansion 2002 Annual Growth Rate of +4%GLYPH<CR>