TCF Bank 2011 Annual Report Download - page 119

Condensed Statements of Cash Flows
Year Ended December 31
(In thousands) 2011 2010 2009
Cash flows from operating activities:
Net income $109,394 $ 150,947 $ 94,269
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of bank subsidiaries (93,546) (159,632) (73,977)
Other, net 28,320 16,743 29,794
Total adjustments (65,226) (142,889) (44,183)
Net cash provided by operating activities 44,168 8,058 50,086
Cash flows from investing activities:
Capital infusions to bank subsidiary (33,000) (255,000) (50)
Purchase of premises and equipment, net (133) (142) (40)
Other, net 21 – –
Net cash used by investing activities (33,112) (255,142) (90)
Cash Flows from financing activities:
Dividends paid on common stock (30,772) (27,617) (50,828)
Dividends paid on preferred stock – – (7,925)
Issuance of common stock 219,666 164,748 –
Recission of capital contribution to bank subsidiary – – 361,172
Redemption of preferred securities – – (361,172)
Interest paid on trust preferred securities (12,364) (12,364) (12,364)
Shares sold to Employees Stock Purchase Plans 17,971 18,089 19,147
Stock Compensation tax benefits (expense) 280 298 (1,058)
(Repayments of) proceeds from senior unsecured term note (90,489) 89,640 –
Other, net – – 1,537
Net cash provided (used) by financing activities 104,292 232,794 (51,491)
Net increase (decrease) in cash 115,348 (14,290) (1,495)
Cash and cash equivalents at beginning of year 17,772 32,062 33,557
Cash and cash equivalents at end of year $133,120 $ 17,772 $ 32,062
TCF Financial Corporation’s (parent company only)
operations are conducted through its banking subsidiaries
and other subsidiaries. As a result, TCF’s cash flow and ability
to make dividend payments to its common stockholders
depend on the earnings of its subsidiaries. The ability of
TCF’s banking subsidiaries to pay dividends or make other
payments to TCF is limited by their obligations to maintain
sufficient capital and by other regulatory restrictions on
dividends. At December 31, 2011, TCF’s banking subsidiary
could pay a total of approximately $329.4 million in
dividends to TCF without prior regulatory approval.
Additionally, retained earnings at TCF’s bank subsidiary,
at December 31, 2011 includes approximately $134.4
million for which no provision for federal income taxes
has been made. This amount represents earnings legally
appropriated to thrift bad debt reserves and deducted
for federal income tax purposes in prior years and is
generally not available for payment of cash dividends
or other distributions to stockholders. Future payments
or distributions of these appropriated earnings could
invoke a tax liability for TCF based on the amount of the
distributions and the tax rates in effect at that time.
Note 27. Litigation Contingencies
From time to time, TCF is also a party to other legal
proceedings arising out of its lending, leasing and deposit
operations. TCF is and expects to become engaged in a
number of foreclosure proceedings and other collection
actions as part of its lending and leasing collections
activities. TCF may also be subject to enforcement
action by federal regulators, including the Securities
and Exchange Commission, the Federal Reserve and the
OCC. From time to time, borrowers and other customers,
or employees or former employees, have also brought
actions against TCF, in some cases claiming substantial
damages. Financial services companies are subject to the
1012011 Form 10-K