TCF Bank 2000 Annual Report Download - page 56

54
TCF
The significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:
At December 31,
(In thousands) 2000 1999
Deferred tax assets:
Securities available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,755 $27,967
Allowance for loan and lease losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,471 15,437
Pension and other compensation plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,710 12,032
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,936 55,436
Deferred tax liabilities:
Lease financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,653 27,292
Loan fees and discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,570 9,738
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,124 3,216
Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,347 40,246
Net deferred tax assets (liabilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(28,411) $15,190
Treasury Stock and Other – Treasury stock and other consists of the following:
At December 31,
(In thousands) 2000 1999
Treasury stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(325,026) $(295,148)
Shares held in trust for deferred compensation plans, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61,908) (46,066)
Unamortized deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,056) (14,887)
Loan to Executive Deferred Compensation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,137) (4,721)
$(425,127) $(360,822)
On January 19, 1998, the Board authorized the repurchase of up to 5% of TCF common stock, or 4.6 million shares. On June 22, 1998,
the Board authorized the repurchase of up to an additional 5% of TCF common stock, or 4.5 million shares. On December 15, 1998, the
Board authorized the repurchase of up to an additional 5% of TCF common stock, or 4.3 million shares. On March 8, 2000, the Board
authorized the repurchase of up to an additional 5% of TCF common stock, or 4.1 million shares. TCF purchased 3,243,800, 4,091,611
and 7,549,300 shares of common stock during the years ended December 31, 2000, 1999 and 1998, respectively. At December 31, 2000,
TCF has remaining authorization of 2.6 million shares under its March 8, 2000 5% stock repurchase program.
12 >STOCKHOLDERS’ EQUITY
Restricted Retained Earnings – In general, TCF’s subsidiary
banks may not declare or pay a dividend to TCF in excess of 100%
of their net profits for that year combined with their retained net
profits for the preceding two calendar years without prior approval
of the Office of the Comptroller of the Currency (“OCC”).
Additional limitations on dividends declared or paid on, or repur-
chases of, TCF’s subsidiary banks’ capital stock are tied to the
national banks’ regulatory capital levels.
Undistributed earnings and profits at December 31, 2000
includes approximately $134.4 million for which no provision for
federal income tax has been made. This amount represents earn-
ings appropriated to bad debt reserves and deducted for federal
income tax purposes and is generally not available for payment of
cash dividends or other distributions to shareholders. Payments
or distributions of these appropriated earnings could invoke a tax
liability for TCF based on the amount of earnings removed and
current tax rates.
Shareholder Rights Plan – TCF’s preferred share purchase
rights will become exercisable only if a person or group acquires or
announces an offer to acquire 15% or more of TCF’s common
stock. When exercisable, each right will entitle the holder to buy
one one-hundredth of a share of a new series of junior participat-
ing preferred stock at a price of $100. In addition, upon the occur-
rence of certain events, holders of the rights will be entitled to
purchase either TCF’s common stock or shares in an “acquiring
entity” at half of the market value. TCF’s Board of Directors (the
“Board”) is generally entitled to redeem the rights at 1 cent per right
at any time before they become exercisable. The rights will expire
on June 9, 2009, if not previously redeemed or exercised.