TCF Bank 2003 Annual Report Download - page 68

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66 TCF Financial Corporation and Subsidiaries
Note 17. Incentive Stock Program
The TCF Financial 1995 Incentive Stock Program (the “Program”)
was adopted to enable TCF to attract and retain key personnel.
Under the Program, no more than 5% of the shares of TCF common
stock outstanding on the date of initial shareholder approval may
be awarded. At December 31, 2003, there were 2,707,627 shares
reserved for issuance under the Program, including 240,848 shares
related to outstanding stock options.
At December 31, 2003, there were 1,071,123 shares of
performance-based restricted stock that will vest only if certain
earnings per share goals are achieved by 2008. Failure to achieve
the goals will result in all or a portion of the shares being forfeited.
Other restricted stock grants generally vest over periods from
three to eight years. The weighted-average grant date fair value
of restricted stock was $45.00, $48.93 and $39.53 in 2003, 2002
and 2001, respectively. Compensation expense for restricted stock
totaled $9.7 million, $11.6 million and $11.1 million in 2003, 2002
and 2001, respectively.
TCF has also issued stock options under the Program that generally
become exercisable over a period of one to 10 years from the date
of the grant and expire after 10 years. All outstanding options have
a fixed exercise price equal to the market price of TCF common stock
on the date of grant.
The following table sets forth TCF’s and TCF National Bank’s regulatory tier 1 leverage, tier 1 risk-based and total risk-based capital levels,
and applicable percentages of adjusted assets, together with the excess over minimum capital requirements:
Minimum Capital
Actual Requirement Excess
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2003:
Tier 1 leverage capital
TCF Financial Corporation . . . . . . . . . . . . . . $765,271 6.87% $334,402 3.00% $430,869 3.87%
TCF National Bank . . . . . . . . . . . . . . . . . . . . 754,599 6.83 331,649 3.00 422,950 3.83
Tier 1 risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 765,271 9.75 313,825 4.00 451,446 5.75
TCF National Bank . . . . . . . . . . . . . . . . . . . . 754,599 9.64 313,143 4.00 441,456 5.64
Total risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 841,982 10.73 627,650 8.00 214,332 2.73
TCF National Bank . . . . . . . . . . . . . . . . . . . . 831,310 10.62 626,286 8.00 205,024 2.62
As of December 31, 2002:
Tier 1 leverage capital
TCF Financial Corporation . . . . . . . . . . . . . . $ 773,594 6.42% $ 361,435 3.00% $ 412,159 3.42%
TCF National Bank . . . . . . . . . . . . . . . . . . . . 750,935 6.24 361,017 3.00 389,918 3.24
Tier 1 risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 773,594 9.96 310,828 4.00 462,766 5.96
TCF National Bank . . . . . . . . . . . . . . . . . . . . 750,935 9.68 310,247 4.00 440,688 5.68
Total risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 850,694 10.95 621,657 8.00 229,037 2.95
TCF National Bank . . . . . . . . . . . . . . . . . . . . 828,035 10.68 620,493 8.00 207,542 2.68
At December 31, 2003, TCF and TCF National Bank exceeded their regulatory capital requirements and are considered “well-capitalized”
under guidelines established by the FRB and the OCC pursuant to the Federal Deposit Insurance Corporation Improvement Act of 1991.