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MONITOR EXCLUSIVE: PROFILE OF SUCCESS
I
f there’s one thing Craig Dahl knows, it’s how to
win. He led TCF Equipment Finance through both
the dotcom bubble and the Great Recession to
achieve its 15th birthday last year. Now, in an achieve-
ment unmatched by most equipment finance execu-
tives, he has been appointed president of TCF Financial
Corporation, a move that expands his responsibili-
ties from overseeing the bank’s lending businesses to
include retail banking and information technology.
Dahl began his career in equipment finance in 1991
when Wells Fargo predecessor Norwest consolidated
asset-based lending and leasing back in to its bank
group. Dahl became the CAO for Norwest Equipment
Finance, before becoming national sales manager.
In 1999, he began a new adventure. “I started TCF
Equipment Finance, so I was employee No. 1,” he
recalls. “There wasn’t anyone else doing general equip-
ment finance when I came here. I saw others leave
Norwest and attempt to start leasing companies for
banks and none of them succeeded, so the fact that we
made it to 15 years was quite an accomplishment.”
Two mentors stand out for Dahl during his career. “I
reported to Lynn Nagorske for my first nine years with
TCF,” he says. “What I learned from him was hard work
always pays off.” Dahl credits his management routine
to the late Nagorske, former TCF president and CEO,
who was very disciplined and focused. “Bill Cooper
has been the most influential person of my career,” he
says of TCF’s current CEO. “He also believes in routine
but he has more intuition about the business and he is
extremely creative. I think that really matches with what
you need in the leasing business.”
Success Amid Recession
Dahl’s biggest accomplishment is his ability to lead
through a storm. “As a manager you’re never really
sure if you’re making the right decisions, because when
the markets are good every decision looks good,” he
explains. “But when markets tighten, all of a sudden you
find out. How TCF performed in the leasing business
through the financial crisis is something that we’re all
very proud of.”
During the Great Recession, Dahl says TCF saw
a slight increase in charge offs, which were all mostly
worked out in a year’s time. “We grew significantly
through portfolio acquisitions and company acquisi-
tions during that time,” he continues, adding that TCF
Equipment Finance did not have a single unprofitable
month during the entire financial crisis. “Rather than
retrenching, downsizing and exiting, we actually grew
at an accelerated rate during that timeframe.”
So what’s his secret? Dahl points to three factors that
lead to success in the equipment finance industry. First,
he says CEOs must be very engaged in the business.
Secondly, a company must ensure strong risk manage-
ment throughout the enterprise, especially in leadership
positions. Finally — and perhaps most important — is
avoiding the temptation to ride a “hot market.”
Winning for the Right Reasons:
Craig Dahl’s Recipe for Long-Term Success
BY RITA E. GARWOOD
In an achievement unmatched by most equipment finance executives, Craig R. Dahl has been appointed
president of TCF Financial Corporation. In this exclusive Monitor interview, Dahl shares the keys to TCF’s
success: engaged leadership, strong risk management, a rigorous control process, as well as recruiting —
and retaining — a winning team.
CRAIG R. DAHL
President,
TCF Financial Corporation
“We’re always willing to lose business to someone who wants to
cut a corner; it’s just got to be embedded into your business model. The
more you’ve thought ahead, the stronger your controls are. The more
you’ve responded to the previous communications — or even criticisms
of your business — shows that you’re paying attention.”
2. JUL/AUG 2015 • monitor • 45
more leadership opportunities, and we were picked as one of the great
places to work in the Twin Cities.” Dahl adds that TCF Equipment
Finance employees know their efforts matter. “If you look at some of
these other ‘megabanks’ the impact of the equipment finance business
— no matter how big they are — dwarfs by scale of all the other busi-
nesses, but here it’s a pretty meaningful contribution. People like to
work where their performance counts.”
This sentiment ties in with Dahl’s view on the divestiture of GE.
“We’re not on a large enough scale to be a bidder for one of those busi-
nesses, but we can certainly be a home for a lot of the talent looking
for a place with viable funding and that is ethical and wins for the right
reasons.” Dahl says it will be interesting to see who will buy GE’s busi-
nesses, and who will end up with the talent.
Rebranding for the Road Ahead
Looking forward, Dahl is not fazed by the potential threat of unregu-
lated independents and new entrants that are competing with bank
lenders. “We’re in a period of extremely low interest rates, and have
been, so there is a ton of liquidity out in the market,” he explains.
“When the interest rate environment starts to change, there will be less
access for some of these unregulated lenders. There are always people
who are willing to cut a corner to win a deal, and that’s not how we
want to compete. It’s up to us to make sure we can continue to adapt
and work with customers that appreciate our approach.”
Dahl sees a sunny future for TCF as it undergoes a rebranding
process that highlights the bank’s investment in customer experi-
ence while aligning the branding, advertising and approach of all TCF
businesses. “We’ve been successful more independently within the
company,” Dahl says of the leasing businesses. “But we’re much more
powerful with all of our business aligned than individually.”
As the businesses align, Dahl anticipates more crossover. “I think
over time you’ll see more of that,” he says, indicating that TCF’s equip-
ment finance and inventory finance business already work hand-in-
hand. “I think there’s an opportunity with our SBA initiative, inventory
finance as well as auto finance with our car dealer customers.”
Dahl says the true measure of success comes back to the
customers. “Having a new advertisement or a new billboard doesn’t
mean anything if you’re not backing it up,” he explains. “A lot of
people on our lending side count on TCF to come through based on
financing their inventory, a critical piece of equipment or a commercial
real estate project. We get feedback every day, while sometimes on
the retail side, we only get to talk to a customer if there’s a problem.”
Dahl explains that TCF employees have completed extensive training
to meet the needs of customers, a process that Dahl expects will only
bolster TCF’s winning streak. m
RITA E. GARWOOD is editor of Monitor.
The leasing industry has another bonus, according to Dahl. “When
the syndication market works, we get the same financial information to
make a decision that the original lender got, and a new credit decision
is made,” he explains, noting that the distance between the borrower
and the lender isn’t all that far when compared to buying scenarios
based on rating alone, such as the synthetic mortgage securities that
rocked the economy in 2008. “There really was no credit decision
being made there based on the individual transaction side, and I think
that’s the big difference.”
Dahl explains that TCF follows a rigorous “front end guidance
process,” which entails examining expected transaction types, the
level of associated risk and the anticipated transaction price. “We’re
always willing to lose business to someone who wants to cut a corner;
it’s just got to be embedded into your business model. The more
you’ve thought ahead, the stronger your controls are. The more you’ve
responded to the previous communications — or even criticisms of
your business — shows that you’re paying attention.”
“TCF has a very disciplined segment approach,” Dahl says. “We
have extremely limited exposure to oil and gas just because of the
volatility. When we go through a hot streak, it’s very easy for lenders
to charge into that market because there’s clearly a need for capital,
but when you turn it around you’re not going to get repaid from idle
assets either.” To demonstrate the outcome of this approach, Dahl
notes that TCF did not exit any segments in equipment finance during
the recession.
Investing in Talent
Another bragging right for Dahl is the fact that TCF did not lay off any
employees during the Great Recession, but instead added staff over
that time. “You can’t ever have enough talent,” Dahl explains, adding
that he is fortunate to have a great management team. “You have to
be willing to delegate. You have to trust others. I think our guys have
clearly taken the reins and have continued that view as we’ve grown
the businesses.”
As a result of this trust, TCF has experienced very little turnover
at the executive level in its lending businesses. “It’s a real joy to work
with these guys,” Dahl says. “We can finish each other’s sentences
when we’re talking about business.”
As a result of this trust, TCF has experienced very little turnover
at the executive level in its lending businesses. Dahl is particularly
proud of building a bench of leaders who have gone on to broader
roles within TCF. He points to TCF’s vice chairman Tom Jasper and
CFO Mike Jones as well as TCF Equipment Finance executives Bill
Henak, Brad Gunstad and Mark Nyquist as long-tenured leaders who
have helped to grow the company. “It’s a real joy to work with these
guys,” Dahl says. “We can finish each other’s sentences when we’re
talking about business.”
“Going forward, it’s really making sure that we have the next
generation of leaders,” Dahl says, adding that TCF’s ability to compete
for talent is due to its strong focus on the talent management process.
“This is really the beginning of the next generation, where we iden-
tify the next key leaders and make sure they’re getting development
opportunities and the experience they need. We’ve been talking in the
equipment finance business about the ‘greying of leasing’ for my entire
career, and I think that there’s clearly an opportunity to bring some
young talent inside the leasing business.”
“People like to win,” he continues. “I think the success we’ve had
is part of the reason why we retain our employees. We’ve also created
“If you look at some of these other ‘megabanks’ the impact
of the equipment finance business — no matter how big they
are — dwarfs by scale of all the other businesses, but here
it’s a pretty meaningful contribution. People like to work
where their performance counts.”