TCF Bank 2009 Annual Report Download - page 81

2009 Form 10-K : 65
Additional valuation and related assumption information
for TCF’s stock option plans related to options issued in
2008 is presented below.
Expected volatility 28.5%
Weighted-average volatility 28.5%
Expected dividend yield 3.5%
Expected term (in years) 6.25 - 6.75
Risk-free interest rate 2.58 - 2.91%
Note 16. Employee Benefit Plans
 The TCF Employees
Stock Purchase Plan generally allows participants to make
contributions of up to 50% of their covered compensation
on a tax-deferred basis, subject to the annual covered
compensation limitation imposed by the Internal Revenue
Service (“IRS”). TCF matches the contributions of all
participants with TCF common stock at the rate of 50 cents
per dollar for employees with one through four years of
service, up to a maximum company contribution of 3% of
the employee’s covered compensation, 75 cents per dollar
for employees with ve through nine years of service, up to
a maximum company contribution of 4.5% of the employee’s
covered compensation, and $1 per dollar for employees
with 10 or more years of service, up to a maximum company
contribution of 6% of the employee’s covered compensation,
subject to the annual covered compensation limitation
imposed by the IRS. Employee contributions vest immediately
while the Company’s matching contributions are subject
to a graduated vesting schedule based on an employee’s
years of service with full vesting after ve years. Employees
have the opportunity to diversify and invest their account
balance, including matching contributions, in various
mutual funds or TCF common stock. At December 31, 2009,
the fair value of the assets in the plan totaled $143.8
million and included $111.3 million invested in TCF common
stock. The Company’s matching contributions are expensed
when made. TCF’s contributions to the plan were $6.9
million, $6.9 million and $6.6 million in 2009, 2008 and
2007, respectively.
 The TCF Cash Balance Pension Plan (the
“Pension Plan”) is a qualied dened benet plan covering
eligible employees who are at least 21 years old and have
completed a year of eligibility service with TCF. Employees
hired after June 30, 2004 are not eligible to participate in
the Pension Plan. Effective March 31, 2006, TCF amended
the Pension Plan to discontinue compensation credits
for all participants. Interest credits will continue to be
paid until participants’ accounts are distributed from the
Pension Plan. Each month TCF credits participant accounts
with interest on the account balance based on the ve-year
Treasury rate plus 25 basis points determined at the begin-
ning of each year. All participant accounts are vested.
The measurement of the projected benet obligation,
prepaid pension asset, pension liability and annual pension
expense involves complex actuarial valuation methods and
the use of actuarial and economic assumptions. Due to the
long-term nature of the pension plan obligation, actual
The following table summarizes information about stock options outstanding at December 31, 2009.
Stock Options Outstanding Stock Options Exercisable
Weighted-
Weighted- Average Weighted-
Average Remaining Average
Exercise Contractual Exercise
Exercise price range Shares Price Life in Years Shares Price
$12.85 - $15.75 2,208,619 $14.44 8.26 – $ –